United Parcel Service Complaint - UPS - New Profit Source: Don't Pay Insurance Claims
The item was all but destroyed when I opened it. I called UPS and they sent two guys out to look at the damage. They took it back with them, but they agreed that everything was properly packed and properly marked as "Extremely Fragile". Just in case, I took pictures.
Ten days later, I get a letter from UPS saying they were denying my insurance claim because the box was "...improperly packed..." and "...not marked..." with Fragile stickers. When I sent them the pictures, the UPS telephone representative said that their shipping insurance isn't for damage done to the package, only "...to assure the package gets delivered...". I was told that since the package was delivered, they did their part of the insurance "contract". Now I'm stuck with nothing for my almost $3000 - no instrument, no honored claim, nothing.
UPS is committing insurance fraud. They never once:
1) Said that insurance is for "delivery" only.
2) Inspected the box to verify that it was properly packed
3) Noted on any forms that the box was clearly marked "FRAGILE"
I have since found out that UPS has done this throughout the US. They charge for insurance, and when the box shows up (damaged, or in some cases, not at all), they refuse to pay the insurance claim. When the person takes them to small claims, they don't show up for the trial. They know they are going to lose the claim by default, but they can automatically appeal the claim and use their attorney to paper the court with motions and legal procedures. We, as the consumers can't usually afford an attorney to fight the UPS attorney in the appeal, so they end up winning on appeal.
UPS has turned their "Lose, Appeal and Win" strategy into a way to make lots of money on shipping insurance and not have to pay out any claims, knowing that they will almost always Win on appeal by papering the court with motions. They even have the Small Claims forms pre-filled with a "canned" appeal response: they claim that (in a company that has literally thousands of employees) the "manager" couldn't show up on the court date because he was "sick". I guess he is the ONLY manager that is employed by UPS.
UPS looks like a VERY RIPE target for a class action suit to prevent them from taking money for insurance but never paying claims.
NEVER, EVER EVER use UPS. At least FEDEX pays their claims. The US Postal Service never argues about insurance claims - they almost always paid, unless it's a case of clear fraud.
UPS is a FRAUD and is committing FRAUD by charging customers for insurance which they never intend to pay. They have created a scheme whereby they never have to pay a claim, and have turned that into another source of income.
DON'T USE UPS. THEY SUCK.
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